5-year rule: the State offers to pay 10 million EUR to the Collectivité

The President Aline Hanson began the session of the Territorial Council with “good news”. She announced having won "against the State" in the case on compensation for loss related to the five-year rule. Individuals who settled in Saint Martin after July 15, 2007, and received their income in Saint Martin have not paid their taxes to the Collectivité but to the State. However, the latter undertook to compensate for this loss. But after several years of discussions, the Collectivité had still not received a cent. Nor "specific answers" to the reminder letters sent in 2012 and 2013. In addition, the Chair of the Territorial Council decided in February 2016 to "close the mutual agreement procedure" and bring the case to court in order to obtain the payment of the compensation due, estimated then to 4.5 million EUR.

According to statements this morning by the President at the Territorial Council, the State suggested the sum of 10 million EUR in respect of the years 2008 and 2009. "This proposal has been submitted to the Executive Council at a meeting on December 6, and members have approved it," reported the Chair. These 10 million EUR will then be added to the next budget of the Collectivité.

Furthermore, Aline Hanson indicated that her services are in negotiations with Paris and precisely the Elysée so that the debt related to  the RSA due by the Collectivité, and which now reaches 48 million EUR, is reduced. Paris would have accepted a deletion but the Collectivité expects that "these decisions are notified by mail.” Aline Hanson did not specify the amount of this reduction.


Estelle Gasnet